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REVISED RULES OF PROCEDURE or issuer of an insurance policy in a construction

GOVERNING CONSTRUCTION project.


ARBITRATION (As amended by CIAC
Resolution Nos. 15-2006, 16-2006, 18-2006, 19- 2.2.1 The CIAC shall continue to exercise original and
2006, 02-2007, 07-2007, 13-2007, 02-2008, 03-2008, exclusive jurisdiction over construction disputes
11-2008, 01-2010, 04-2010, 07-2010, 08-2014, 07- although the arbitration is commercial pursuant to
2016, 06-2017, 01-2019, 04-2019, and 05-2019) Section 21 of R.A. 9285 or the Alternative Dispute
Resolution Act of 2004.
RULE 1 - POLICY AND OBJECTIVES
SECTION 1.1 Statement of policy and objectives - It 2.2.2 Excluded from the coverage of this Rules are
is the policy and objective of these Rules to provide a disputes arising from employer-employee
fair and expeditious resolution of disputes as an relationships, which shall continue to be covered by
alternative to judicial proceedings, which may restore the Labor Code of the Philippines.
the disrupted harmonious and friendly relationships
between or among the parties. SECTION 2.3 Condition for exercise of jurisdiction -
For the CIAC to acquire jurisdiction, the parties to a
SECTION 1.2 Applicability of rules - These Rules are dispute must be bound by an arbitration agreement in
applicable to proceedings in arbitration before an their contract or subsequently agree to submit the
Arbitral Tribunal of one or more Arbitrator/s. same to voluntary arbitration.
2.3.1 Such arbitration agreement or subsequent
SECTION 1.3 Judicial rules not controlling - In any submission must be alleged in the Complaint. Such
arbitration proceeding under these Rules, the judicial submission may be an exchange of communication
rules of evidence need not be controlling, and it is the between the parties or some other form showing that
spirit and intention of these Rules to ascertain the the parties have agreed to submit their dispute to
facts in each case by every and all reasonable means arbitration. Copies of such communication or other
without regard to technicalities of law or procedure. form shall be attached to the Complaint.

RULE 2 – JURISDICTION 2.3.2 If the Complaint is filed without the required


SECTION 2.1 Jurisdiction – The CIAC shall have arbitration clause or subsequent submission, the
original and exclusive jurisdiction over disputes, CIAC Secretariat shall within three (3) days from such
which arose from, or is connected with contracts filing, notify the Respondent that, if he/it is willing to
entered into by parties involved in construction in the have the dispute be resolved by arbitration, such
Philippines whether the dispute arose before or after agreement must be clearly expressed in the Answer.
the completion of the contract, or after the
abandonment or breach thereof. These disputes may 2.3.3 Respondent‟s refusal to Answer the Complaint
involve government or private contracts. or the filing of a Motion to Dismiss for lack of
jurisdiction shall be deemed a refusal to submit to
2.1.1 The jurisdiction of the CIAC may include but is arbitration. In either case, the Commission (CIAC)
not limited to violation of specifications for materials shall dismiss the Complaint without prejudice to its
and workmanship; violation of the terms of refiling upon a subsequent submission.
agreement; interpretation and/or application of
contractual provisions; amount of damages and SECTION 2.4 Jurisdictional challenge – A motion to
penalties; commencement time and delays; dismiss based on lack of jurisdiction shall be resolved
maintenance and defects; payment default of by the appointed arbitral tribunal.
employer or contractor and changes in contract cost.
2.4.1 The Arbitral Tribunal shall have full authority to
SECTION 2.2 Coverage – The disputes referred to in resolve all issues raised in the Motion to Dismiss for
Section 2.1 of Rule 2 shall include those between or lack of jurisdiction on the grounds that:
among parties to, or who are otherwise bound by, an a. the dispute is not a construction dispute, or
arbitration agreement, directly or by reference, b. that the Respondent was represented by one
whether such parties are project owner, contractor, without capacity to enter into a binding arbitration
subcontractor, fabricator, project manager, design agreement, or
professional, consultant, quantity surveyor, bondsman
c. that said agreement or submission is not valid for SECTION 3.4 Commencement of arbitral
some other reasons, proceedings - The date when the Request for
d. or does not cover the particular dispute sought to Arbitration is filed with CIAC shall, for all intents and
be arbitrated, or purposes, be deemed to be the date of
e. other issues of interpretation or nonfulfillment of commencement of the proceedings.
pre-conditions to arbitration that are raised therein.
RULE 4 - EFFECT OF AGREEMENT TO
ECTION 2.5 Non-waiver of jurisdictional challenge - ARBITRATE
A party does not waive its right to challenge the
jurisdiction of CIAC by any of the following acts: SECTION 4.1. Submission to CIAC jurisdiction - An
a) participating in the nomination process including arbitration clause in a construction contract or a
challenging the qualifications of a nominee; submission to arbitration of a construction dispute
b) praying for extension of time to file appropriate shall be deemed an agreement to submit an existing
pleading/motion to dismiss; or future controversy to CIAC jurisdiction,
c) opposing an application for interim relief; notwithstanding the reference to a different
d) filing of a motion to dismiss/suspend. arbitration institution or arbitral body in such contract
or submission.
RULE 3 - REQUEST FOR ARBITRATION /
COMPLAINT 4.1.1 Submission to CIAC Rules – when the parties
SECTION 3.1 Filing - Any party to a construction have agreed to submit the dispute/s to arbitration by
contract desiring to avail of arbitration shall file its CIAC, they shall be deemed thereby to have
Request for Arbitration in the prescribed form and submitted ipso facto to these Rules and any
number of copies to the Secretariat of the CIAC. amendments hereto.
4.1.2 When a contract contains a clause for the
SECTION 3.2 Preconditions. The claimant against submission of a future controversy to arbitration, it is
the government, in a government construction not necessary for the parties to enter into a
contract, shall state in the complaint/request for submission agreement before the Claimant may
arbitration that invoke the jurisdiction of CIAC.
1) all administrative remedies have been exhausted, or 4.1.3 An arbitration agreement or a submission to
2) there is unreasonable delay in acting upon the claim arbitration shall be in writing, but it need not be
by the government office or officer to whom appeal is signed by the parties, as long as the intent is clear that
made, or the parties agree to submit a present or future
3) due to the application for interim relief, exhaustion controversy arising from a construction contract to
of administrative remedies is not practicable. arbitration.

3.2.1 The Claimant in a private construction contract It may be in the form of:
has the same obligation as the above to show similar a. exchange of letters sent by post or
good faith compliance with all preconditions imposed b. by telefax, telexes, telegrams, electronic mail or
therein or exemptions therefrom. c. any other mode of communication.

3.2.2 In case of non-compliance with the SECTION 4.2 Failure or refusal to arbitrate - Where
precondition contractually imposed, absent a showing the jurisdiction of CIAC is properly invoked by the
of justifiable reasons, exemption, or a waiver thereof, filing of a Request for Arbitration in accordance with
the tribunal shall suspend arbitration proceedings these Rules, the failure despite due notice which
pending compliance therewith within a reasonable amounts to a refusal of the Respondent to arbitrate,
period directed by the Tribunal. shall not stay the proceedings notwithstanding the
absence or lack of participation of the Respondent.
SECTION 3.3 Request to answer - The CIAC
Secretariat shall within 3 days from filing, transmit to In such case, CIAC shall appoint the arbitrator/s in
the Respondent a request for his Answer, attaching accordance with these Rules. Arbitration proceedings
thereto a copy of the complaint and the Request for shall continue, and the award shall be made after
Arbitration together with the annexed documents. receiving the evidence of the Claimant.
4.2.1 In the event that, before award, the Respondent SECTION 6.2 Notices - Notifications or
who had not earlier questioned the jurisdiction of the communications from the Secretariat and/or the
Tribunal, appears and offers to present his evidence, Arbitrator(s) shall be validly made if they are delivered
the Arbitral Tribunal may, for reasons that justifies personally by an authorized representative of CIAC,
the failure to appear, reopen the proceedings, require by private courier, by registered mail to the
him to file his answer with or without counterclaims, address(es) or last known address(es) of the party(ies)
pay the fees, where required under these Rules, and for whom the same are intended appearing in the
allow him to present his evidence, with limited right record, and/or by email sent to the email addresses of
to cross examine witnesses already presented in the the party(ies) on record, at the option of the
discretion of the Tribunal. Evidence already admitted Secretariat/arbitrator(s).
shall remain. The Tribunal shall decide the effect of
such controverting evidence presented by the If the Notice to Respondent/Request to Answer the
Respondent on evidence already admitted prior to complaint under Section 3.3 hereof is not received by
such belated appearance. Respondent due to wrong address or because
Respondent has moved out from, or cannot be found
SECTION 4.3. When arbitration cannot proceed - at, the last known address provided by the Claimant,
Where the contract between the parties does not the CIAC Secretariat shall inform the Claimant of the
provide for arbitration and the parties cannot agree to non-delivery/non-receipt of the notice and require
submit the dispute(s) to arbitration, the arbitration Claimant to provide CIAC with Respondent‟s
cannot proceed and the Claimant/s shall be informed correct/new address within 15 days from receipt of
of that fact. advice.

RULE 5 – ANSWER/COUNTERCLAIMS if Claimant fails to comply, the Commission shall


SECTION 5.1 Time to answer - The Respondent dismiss the case without prejudice to its refiling once
shall, within 15 days from receipt of the Request for the whereabouts of Respondent/s are known to
Arbitration/Complaint, file its answer thereto Claimant/s
including such counterclaim/s as it may assert. For
justifiable reason/s, Respondent may apply to CIAC 6.2.1 Notification or communication shall be deemed
for an extension of time to file its answer. If to have been effected on the date when actually or
Respondent fails to do so, the arbitration shall constructively received.
proceed in accordance with these Rules.
RULE 7- CONFIDENTIALITY
SECTION 5. 2 Transmittal of answer - A copy of the SECTION 7.1 Confidentiality of proceedings – The
answer shall be transmitted in sufficient copies to the arbitration proceedings shall be considered
Claimant and to CIAC. confidential and shall not be published except:
(i) with the consent of the parties, or
SECTION 5.3 Reply to counterclaim - The Claimant (ii) when necessary in case resort to the Court is made
shall file a reply to the counterclaim with CIAC and under the Rules of Court.
shall furnish the Respondent a copy thereof within 15
days from date of receipt of the answer with The term “arbitration proceedings” shall include
counterclaim. communications to or from CIAC, the pleadings,
applications and other papers filed with CIAC, sworn
Note: You cannot file a motion for extension of time statements, documentary and testimonial evidence,
in a motion for reconsideration reports and minutes taken of the proceedings, and
other orders, decision, award or resolution issued by
RULE 6 – SUBMISSION AND the Arbitrator(s).
COMMUNICATIONS / NOTICES
SECTION 6.1 Number of copies - All pleadings and SECTION 7.2 Violation of confidentiality – Any
written statements submitted by the parties, as well as person who violates the immediately preceding
all documents attached thereto, shall be in sufficient confidentiality provision shall be subject to the
copies to provide 1 copy for each party, plus one for following sanctions:
each Arbitrator, and one for the Secretariat.
7.2.1 If the violator is a lawyer, administrative action SECTION 8.3 Undertaking of arbitrator upon the
or proceeding to be conducted by CIAC, with proper acceptance of appointment – An arbitrator who
notice and hearing, for inhibition or prohibition from accepts an appointment as arbitrator undertakes to:
appearing as counsel for any party in any arbitration a) Make himself/herself available at all stages of the
case before CIAC for a period not exceeding 6 arbitration proceedings;
months; without prejudice to suspension or b) Remain independent of the parties and their
disbarment action before the Integrated Bar of the counsel or representatives;
Philippines (IBP), at the instance of CIAC. c) Maintain impartiality on all matters relating to the
disputes;
7.2.2 If the violator is a duly licensed and registered d) Have a continuing duty to disclose any fact of
professional, administrative/ disciplinary action circumstance that may arouse justifiable doubts as to
before the Professional Regulation Commission independence or impartiality; and
(PRC), at the instance of CIAC. e) Contribute to the fair, expeditious and timely
resolution of the dispute.
RULE 8 – QUALIFICATIONS OF
ARBITRATORS SECTION 8.4 Arbitrators not permanent employees
SECTION 8.1 General qualification of arbitrators - of CIAC - The Arbitrators shall render service only
The Arbitrators shall be persons in whom the when called upon to arbitrate a construction dispute.
business sector, particularly the stake holders of the
construction industry and the government can have SECTION 8.5 Exemptions from civil liability for
confidence. They shall possess the competence, official acts - Arbitrators shall not be civilly liable for
integrity, and leadership qualities to resolve any acts done in the performance of their official duties
construction dispute expeditiously and equitably. The except in a clear case of bad faith, malice or gross
Arbitrators shall come from different professions. negligence as provided in Section 38 (1), Chapter 9,
They may include engineers, architects, construction Book 1 of the Administrative Code of 1987.
managers, engineering consultants, and businessmen
familiar with the construction industry and lawyers RULE 9 – NOMINATION AND
who are experienced in construction disputes. APPOINTMENT OF ARBITRATORS
SECTION 9.1 Number of arbitrators - A Tribunal of
SECTION 8.2 The Arbitrators must be CIAC- one or three Arbitrators may be appointed to settle a
accredited - Only CIAC-accredited arbitrators may be dispute in accordance with the provisions hereunder.
nominated by the parties and appointed by CIAC as
arbitrators. A replacement arbitrator shall likewise be 9.1.1 In the absence of an agreement on the number
a CIAC-accredited arbitrator. However, as an of arbitrators, CIAC taking into consideration the
exception to this rule, CIAC may appoint to an complexities and intricacies of the dispute/s or the
Arbitral Tribunal an arbitrator who is not CIAC - sum involved, has the option to appoint a Sole
accredited PROVIDED that the nominee: Arbitrator or an Arbitral Tribunal.
1) is the parties‟ common nominee;
2) possesses the technical/legal competence to handle 9.1.2 In case of multiple parties, whether as Claimant
the construction dispute involved; and 3) has signified or as Respondent, including three (3) or more parties
his availability/acceptance of his possible in the arbitration, where all parties are unable to agree
appointments. to a method for constitution of the Tribunal within
ten (10) days from notice, CIAC shall appoint the
- If the issue is complex that it needs the aid of a arbitrators.
panel of arbitrators – each party will each choose 6
names of arbitrator – then CIAC will determine if SECTION 9.2 Sole Arbitrator - Where the parties
there are 3 common arbitrators chosen by both have agreed that the dispute(s) shall be settled by a
parties and within the 3 CIAC will choose the Sole Arbitrator, each party shall name not more than
chairman. six (6) nominees from the CIAC accredited arbitrators
in the order of their preference for appointment as
If there are only 2 common – the 2 will choose the Sole Arbitrator. If any or both of the parties shall fail
third arbitrator who will be the chairman to submit the names of their nominees within the
period/s prescribed by CIAC, a Sole Arbitrator shall a) the dispute is a construction dispute in which one
be appointed by CIAC. party is an international party i.e. one whose place of
business is outside the Philippines. For this purpose,
9.2.1 CIAC shall appoint as sole arbitrator the the term international party shall not include a
common nominee of the parties who is available and domestic subsidiary of such international party or a
not disqualified. co-venturer in a joint venture with a party which has
its place of business in the Philippines.
In the absence of a common nominee or in cases b) the foreign arbitrator to be appointed is not a
where the common nominee is disqualified or is not national of the Philippines and is not of the same
available, CIAC shall return the lists of nominees to nationality as the international party in the dispute;
the parties and ask them to make an agreement on a
common nominee/s within 48 hours. - International party – foreign party is
employed to construct a structure in the
If the parties still fail to agree on a common nominee, philippines
CIAC may appoint a Sole Arbitrator or an Arbitral
Tribunal. If CIAC decides to appoint a Sole 9.4.1 Procedure for appointment of foreign
Arbitrator, it may select an arbitrator who is not a arbitrator.- The foreign arbitrator must be nominated
nominee of any one of the parties and who is not by the international party or is the common choice of
disqualified and is available for appointment. the two CIAC-accredited arbitrators one of whom
was nominated by the international party.
SECTION 9.3 Arbitral Tribunal - Where the parties
have agreed that the dispute shall be settled by an The nomination must be accompanied by a resume or
Arbitral Tribunal, each party shall name not more bio-data of the nominee relevant to qualifications as a
than six (6) nominees from the CIAC accredited construction arbitrator and a signed undertaking of
arbitrators in the order for their preference for the nominee to abide by CIAC arbitration rules and
appointment as Arbitrators. CIAC shall choose and policies.
appoint as members of the Tribunal, one Arbitrator
from the claimant‟s nominees and another from - Foreign company cannot nominate a foreign
respondent‟s nominees. CIAC shall also choose and arbitrator who is of the same nationality – is
appoint the Third Arbitrator and notify the parties not a national of the Philippines and is not of
thereof for their confirmation in writing within five the same nationality of the international party
(5) working days from receipt of the notice. If no in dispute.
confirmation is received within such period, the Third SECTION 9.5 Disqualification of or non-acceptance
Arbitrator appointed by CIAC shall be deemed by nominees - If the nominee(s) of a party shall be
accepted by the parties. The Third Arbitrator chosen disqualified or fail or refuse to accept the
and appointed by CIAC shall be the Chairman of the appointment, CIAC shall choose and appoint any
Tribunal. qualified arbitrator who is willing to be so appointed.

- The third arbitrator shall be chosen by the 2 SECTION 9.6 Challenge - An Arbitrator may be
arbitrators first chosen within 15 days from challenged by a party at any time after his
acceptance of their appointment. The 3 shall appointment but before the lapse of the original 10-
decide from among themselves who will be day period for submission of memoranda or draft
the chairman. In case of failure to agreed decision under Section 13.16, Rule 13 hereof.
within 15 days from the acceptance of their
appointment – CIAC has 15 days to choose Any extensions of time to file memoranda or draft
among the accredited arbitrators to choose decisions will not EXTEND the 10-day period to file
the third arbitrator. a challenge or motion for inhibition.

SECTION 9.4 Conditions for appointment of The challenge shall be based upon the following
foreign arbitrator - A foreign arbitrator not accredited grounds: (Disqualifications)
by CIAC may be appointed as a co-arbitrator or a) relationship by blood or marriage within the 6th
chairperson of an arbitral tribunal for a construction degree of either party to the controversy, or to
dispute under the following conditions:
counsels within the 4th degree, computed according RULE 10 – APPOINTMENT AND
to the rules of civil law. ACCEPTANCE OF ARBITRATORS
b) financial, fiduciary or other interest in the SECTION 10.1 Communication of appointments -
controversy The Secretariat shall communicate to the arbitrators
c) partiality or bias; their appointment.
d) incompetence, or professional misconduct. A party
may also request the inhibition of an arbitrator upon SECTION 10.2 Disclosure by arbitrator of
other just and valid reasons affecting independence, disqualification - Upon acceptance of his
integrity, impartiality and interest. appointment, the Arbitrator shall disclose in writing
to CIAC any circumstance likely to create in either
9.6.1 A motion for inhibition or a request for the party a presumption of bias or which he believes
disqualification and replacement of an arbitrator shall might disqualify him as an impartial Arbitrator. Such
be treated as a challenge. written disclosure shall be communicated to the
parties immediately by the Secretariat. The purpose of
9.6.2 The challenge, motion or request shall be in the such disclosure shall be to enable either party to
form of a complaint under oath, stating distinctly and investigate and ascertain whether there is a substantial
concisely the facts complained of, supported by legal basis to file a motion for inhibition of the
affidavits, if any, of persons having personal arbitrator concerned or seek his replacement.
knowledge of the facts therein alleged and shall be
accompanied with copies of such documents as may SECTION 10.3 Acceptance or refusal - The
substantiate said facts. arbitrator must communicate to CIAC the acceptance
or refusal of his/her appointment within five (5) days
9.6.3 The arbitrator concerned shall be given by from receipt thereof.
CIAC an opportunity to be heard. He may, without
admitting the existence of the ground of the If no communication is received within the prescribed
challenge, motion or request, choose to inhibit period, the appointment shall be deemed accepted.
himself but his decision shall be subject to approval
by CIAC. If the arbitrator refuses/declines the appointment, the
CIAC, on the existence of a ground for
9.6.4 In case the challenged arbitrator is allowed to disqualification or on the basis of just and valid
inhibit himself or is removed, CIAC shall promptly reasons for the arbitrator‟s non-acceptance, shall
appoint his replacement. If the arbitrator concerned is appoint a replacement from the list of the party who
the third member of the Arbitral Tribunal, the first nominated him/her or, if none is available or
two members thereof shall select his replacement. qualified, from the list of CIAC-accredited arbitrators.

9.6.5 The decision of CIAC to retain or replace an SECTION 10.4 Vacancies - If, at any time during the
arbitrator shall be final. proceedings but before an award has been rendered,
any Arbitrator should resign, be incapacitated, refuse
SECTION 9. 7 Disqualification of mediator as or be unable, or be disqualified for any reason to
arbitrator - An Arbitrator who acted as perform the duties of his office, CIAC may, within
conciliator/mediator in a case previously brought five (5) days from the occurrence of a vacancy or
before him for conciliation/mediation cannot act as refusal/inability to accept appointment, appoint a
arbitrator for the same case when brought to substitute(s) to be chosen from a list of alternatives
arbitration, unless both parties consent to his previously agreed upon by the parties. In the absence
appointment in writing. of such a list, the CIAC shall fill the vacancy from the
- Conciliator/mediator cannot act as an list of accredited arbitrators.
arbitrator – Arbitrator cannot be a
conciliator/mediator because the arbitrator If the vacancy occurs after the award has been
will be given the authority to render an arbitral rendered but before the jurisdiction of the
award while a mediator/conciliator will arrive arbitrator/s over the dispute is terminated under
at a compromise agreement Section 16.6 of Rule 16 hereof, the CIAC may, on its
own initiative, or upon written request of any of the
parties, appoint a replacement from the list of
alternatives previously agreed upon by the parties or SECTION 11.3 Disclosure – During the preliminary
the list of accredited arbitrators. conference the Arbitrator who had failed to make his
or her written disclosure required in the previous
The request shall state the justification/s for the need section shall disclose any circumstance likely to give
for a replacement and shall be filed together with the rise to justifiable doubts as to impartiality or
required deposit of arbitrators fees for the independence, including financial or personal interest
substitute/s. The CIAC may, if it finds it necessary, in the outcome of the arbitration and any existing or
appoint a substitute/s. If the CIAC finds the request past relationships with any individual or corporate
to be unnecessary (e.g. for Motions for correction of party together with their respective relatives or
final award under Rule 17.1; Motions for execution or principal stockholders/officers or foreseeable
stay of execution under Rules 18.5 and 18.6; Motions participant in the proceedings.
for relief not covered by the Rules under Rule 19.1; On the basis of such disclosure, either party may ask
cases where the appellate court merely directs a re- clarificatory questions thereon that may lead to a
computation of the award or a clarification thereof, or decision to move for inhibition or accept the
other matters which do not entail a re-hearing of the appointment.
case, or a hearing on the merits of any issue, or would
not disturb/alter the findings in the final award; and SECTION 11.4 Terms of Reference. - This
other similar instances as determined by the CIAC), it document functions like a pre-trial order in judicial
shall deny the same, refund the deposit made, and proceedings and controls the arbitration proceedings
direct the remaining/surviving arbitrator/s to act on unless corrected for manifest errors by motion filed
pending matters. not later than the hearing date.

The decision of the CIAC on vacancies shall be final. 11.4.1 Contents - The TOR shall include the following
RULE 11 – PRELIMINARY CONFERENCE / particulars:
TERMS OF REFERENCE – these are the issues a) the full names of the parties, and their respective
counsels, if any;
SECTION 11.1 Notice of conference - The b) the addresses and contact numbers of the
Arbitrator/Arbitral Tribunal shall set the case for parties/counsels, to which notifications or
preliminary conference not later than 15 days after communications arising in the course of the
appointment of arbitrator(s) and a notice to the arbitration may validly be made;
parties thereof shall forthwith be sent to finalize the c) a summary of the parties' respective claims;
Terms of Reference as provided in d) full statement of admitted facts and documents;
e) the issues to be resolved in question form;
Rule 11.4 below, a draft copy of which is attached f) the Arbitrators' full names;
thereto and to consider the following, among others: g) the place where arbitration proceedings shall be
a. possibility of amicable settlement; held;
b. necessity or desirability of amendments to h) the breakdown, schedule of payments, and sharing
pleadings; of arbitration fees;
c. obtaining stipulations or admission of facts and/or i) such other particulars as may be required by the
documents to avoid unnecessary proof; Arbitral Tribunal for the proper and speedy
d. limitation of the number of witnesses; adjudication of the case.
e. suggested formulation of issues by the parties;
f. application for interim relief, appointment of 11.4.2 Signing - The Terms of Reference (TOR) shall
experts and necessity of site inspection; and be signed on each and every page thereof, by the
g. such other matters as may aid in the just and speedy parties together with their respective counsel and the
disposition of the case. Arbitral Tribunal immediately after finalization
thereof. In any case, the TOR must be finalized and
SECTION 11.2 Introduction of the arbitrators – At signed not later than five (5) days from inception.
the start of the preliminary conference, the
arbitrator/s shall introduce themselves to the parties SECTION 11.5 Arbitration To Proceed Even
paying particular attention to matters related to Without TOR. - In the exercise of the sound
professional training and experience. discretion of the Arbitral Tribunal, arbitration shall
proceed even without the TOR on the basis of the afford full and equal opportunity to all parties to
issues formulated by the pleadings filed by the parties. present relevant evidence.

SECTION 11.6 Submission for Decision. – a case Note: Arbitral Tribunal can reject evidence if
may be deemed submitted for decision if No factual immaterial; not connected to the issues.
issue being in dispute, the case may be deemed
submitted for decision without an oral hearing and on SECTION 13.5 Evidence - The parties may offer
the basis of documentary evidence already submitted. such evidence as they desire and shall produce such
additional documents and witnesses as the Arbitral
RULE 12 – VENUE Tribunal may deem necessary to a clear understanding
of facts and issues for a judicious determination of
SECTION 12.1 Venue, Date and Time of Hearing - the dispute(s). The Arbitral Tribunal shall act
The venue, date and time of the arbitral proceedings according to justice and equity and merits of the case,
shall be mutually agreed upon by the parties and the without regard to technicalities or legal forms and
Arbitral Tribunal. In the event of disagreement, the need not be bound by any technical rule of evidence.
choice of venue made by the Arbitral Tribunal shall Evidence shall be taken in the presence of the
prevail. Arbitral Tribunal and all of the parties, except where
any of the parties is absent, or has waived his right to
RULE 13 - ARBITRATION PROCEEDINGS be present.
SECTION 13.1 Order of Proceedings - A hearing
shall be opened by recording of the place, time and Note: Can move for the reception of evidence can be
date of hearing, the presence of the Arbitral Tribunal, presented as long as the records show that prior to
parties, and witnesses, if any. The names and the hearing, the pieces of evidence are present.
addresses of all witnesses and exhibits in the order
received shall be made part of the record. 13.5.1 Order to produce documentary evidence. Upon
motion of either or both of the parties, or on its own
13.1.1 Quorum - Two members of a tribunal shall initiative, the Arbitral Tribunal may direct any person,
comprise a quorum for the purpose of conducting a board, body, tribunal, or government office, agency or
hearing. instrumentality, or corporation to produce real or
documentary evidences necessary for the proper
SECTION 13.2 Briefing on Rules and procedures - adjudication of the issues.
At the initial hearing, the Arbitral Tribunal shall
inform the parties of the general rules and procedures Note: Contempt power of the court. (disrespect and
on arbitration proceedings, stressing peculiarities from will not follow arbitration)
judicial proceedings, its strict adherence to time bars,
its policies against postponements and other matters 13.5.2 Order to give testimony. The Arbitral Tribunal
to insure a speedy and fair disposition of the issues. may, likewise, direct any person to give testimony at
any proceeding for arbitration.
SECTION 13.3 Order of presentation - It shall be
within the discretion of the Arbitral Tribunal to Note: Subpoena can be issued, to produce, or orally
determine the order of presentation of evidence. present to testify.
Generally, the party who seeks to enforce a right or
establish a claim shall be required to present its Note: Judgment on the Pleading is possible if the
evidence first, followed by the other party. parties will agree to submit documentary evidence,
affidavit, etc. without an actual hearing, then the
Note: Subject to Cross Examination arbitral tribunal will judge or give an award based on
the submitted documents.
SECTION 13.4 Expeditious procedures - The
Arbitral Tribunal shall at all times adopt the most SECTION 13.6 Affidavit in lieu of direct testimony -
expeditious procedures for the introduction and The Arbitral Tribunal shall require the simultaneous
reception of evidences, and shall have complete submission of affidavits of witnesses in lieu of their
control over the proceedings, but in any case shall direct testimonies attaching thereto pertinent
documents supportive of their respective declarations.
These documents shall be properly marked for 13.11.1 Hearings may be adjourned for more than five
purposes of identification. (5) working days when such have been suspended due
to payment defaults of any or both of the parties. The
Note: Testimony by Affidavit is subject to cross Arbitral Tribunal shall order the suspension of
examination to determine truthfulness. hearings upon advice by CIAC of non-payment of
arbitration fees by one or both parties. Hearings shall
SECTION 13.7 Examination by the Arbitral resume upon notice by CIAC of compliance by the
Tribunal - The Arbitral Tribunal may ask clarificatory defaulting party/ies.
questions of the witnesses at any stage of the
proceedings. SECTION 13.12 Arbitration in the absence of the
party - The Arbitration may proceed despite the
SECTION 13.8 Documentary evidence - As a absence of any party who after due notice fails to be
general rule, no documentary evidence(s) presented present or fails to obtain an adjournment. An award,
and offered shall be rejected unless the same is found however, shall not be made solely on the default of a
by the Arbitral Tribunal to be completely irrelevant. party. It shall be made on the basis of evidence
submitted and proven.
SECTION 13.9 Offer of documents - All documents
not offered with the Arbitral Tribunal at the hearing SECTION 13.13 Closing of the hearings - After the
but which are arranged at the hearing subsequently by submission of the draft decision/final memorandum
agreement of the parties to be submitted, shall be (Claims) of arguments and/or the lapse of the period
filed within five (5) days from the termination of the given for the submission thereof, the proceedings is
hearing. All parties shall be afforded opportunity to considered closed and no further pleadings/papers
examine such documents. shall be filed nor accepted for filing.

SECTION 13.10 Site inspection –The Arbitral Note: Simultaneous submission of memoranda.
Tribunal may, motu proprio after notice to the
parties, or upon motion of a party, conduct a site SECTION 13.14 Reopening of hearing - The hearing
inspection of any building, place or premises, may be reopened by the Arbitral Tribunal on their
including any work, material, implement, machinery, own motion or upon the request of any party, upon
appliance or any object therein. The Tribunal in good cause shown, at any time before the award is
deciding on the necessity of a site inspection, may rendered. When hearings are thus reopened, the
consider whether a video or pictorial presentation effective date for the closing of the hearing shall be
may suffice. the date of closing of the reopened hearing.

13.10.1 Costs including transportation, SECTION 13.15 Summation - The Arbitral Tribunal
accommodations, meals, rental fee for the video/still may direct the parties to make a brief oral summation
camera, services, video tape recording, copy of at the end of the oral hearing.
pictures and other expenses shall be equally shared by
both parties (General Rule). In special cases upon SECTION 13.16 Submission of memoranda or draft
the order of the Arbitral Tribunal, the party who decisions - If any or both of the parties so desire,
seeks this video and will benefit from it shall bear the written memoranda or draft decisions may be
expenses. submitted not later than ten (10) calendar days from
the termination of the hearing or from the date of the
Note: If requested by the tribunal, the cost will be filing of additional documents as previously agreed
deducted from the award. upon, whichever is later.

SECTION 13.11 Adjournments - The Arbitral 13.16.1 If both parties agree to submit memoranda or
Tribunal for good cause shown, may adjourn the draft decisions, the filing shall be simultaneous.
hearing upon his/its own initiative or upon the
request of one of the parties. Adjournment shall not SECTION 13.17 Award or decision on the pleadings
be more than five (5) working days. - Instead of a formal hearing, the parties may agree to
submit the issues for resolution after the filing of
pleadings, evidence, memoranda or draft decisions.
SECTION 13.18 Period to make a final award - The RULE 15 – APPOINTMENT OF EXPERTS
number of days within which an award shall be made SECTION 15.1 Appointment of expert 29 - The
will start from the date of the termination of the service of technical or legal experts may be utilized if
hearing, or from the filing of additional documents, or requested by any of the parties or if deemed necessary
from the submission date of memoranda, pleadings, by the Arbitral Tribunal. If the request for an expert is
documents or evidences whichever is later. made by either or by both of the parties, the necessity
of such appointment must be confirmed by the
Note: Rule 16, Sec. 16.1 The award shall be rendered Arbitral Tribunal before issuing an appointment.
promptly by the Arbitral Tribunal within thirty (30)
days from the time the case is submitted for 15.1.1 Whenever the parties request for the services of
resolution but not more than six (6) months from the an expert, they shall equally shoulder the expert's fees
date of signing of the TOR, or in cases where a TOR and expenses, half of which shall be deposited with
is absent, not more than six (6) months from the date the Secretariat before the expert renders service.
of the last preliminary conference called for the When only one party makes the request, it shall
purpose of finalizing and/or signing of the TOR. deposit the whole amount required. If the request for
There shall be no extensions of time unless approved an expert is by the Arbitral Tribunal, the cost of such
by the CIAC. service(s) shall be considered part of the arbitration
expenses which may be ordered to be paid by the
RULE 14 – INTERIM RELIEF (for the losing party or by both parties as the Arbitral Tribunal
meantime) in his/their award may adjudge, in the absence of a
SECTION 14.1 Interim measures - In the course of provision in the TOR signed by the parties relative to
the proceedings, the Arbitral Tribunal may, upon the the sharing of these expenses; provided, however,
request of either or both parties or upon its own both parties consented to the hiring of an expert.
initiative, issue orders as is necessary to attain the
following objectives: RULE 16 – THE ARBITRATION AWARD
a. to ensure the enforcement of the award; SECTION 16.1. Time of award - The award shall be
b. to prevent irreparable loss or injury or rendered promptly by the Arbitral Tribunal within
deterioration of property; thirty (30) days from the time the case is submitted
c. to minimize or avoid undue delays in project or for resolution but not more than six (6) months from
contract implementation; the date of signing of the TOR, or in cases where a
d. to provide security for the performance of any TOR is absent, not more than six (6) months from
obligation; the date of the last preliminary conference called for
e. to produce or preserve any evidence; the purpose of finalizing and/or signing of the TOR.
f. such other measures deemed by the Arbitral There shall be no extensions of time unless approved
Tribunal to be necessary to prevent a miscarriage of by the CIAC.
justice or abuse of rights of any of the parties.
SECTION 16.2 Form of award 30 - The Final award
14.1.1 The order granting provisional relief may be shall be in writing and signed by the Arbitral Tribunal
conditioned upon provision of security for any act or or a majority of its members. A dissent from the
omission specified in the order (for the benefit of the decision of the majority or a portion thereof shall be
party seeking interim relief; e.g. Bond) in writing specifying the portion/s dissented from
with a statement of the reason/s thereof and signed
14.1.2 Such interim measures may include but shall by the dissenting member.
not be limited to preliminary injunction directed
against a party, appointment of receivers or detention, SECTION 16.3 Contents of the final award -
preservation, inspection of property, that is the Generally, the Final Award shall contain the issues
subject of dispute in arbitration. Either party may involved, a brief statement and discussion of the facts,
apply to the Court for assistance in implementing or and the authority relied upon for the resolution or
enforcing an interim measure ordered by an Arbitral disposition of the issues.
Tribunal
SECTION 16.4 Award upon settlement - If the
parties settle their dispute(s) during the course of the
arbitration, the Arbitral Tribunal, upon their request,
may set forth the agreed settlement as an Arbitral 16.7.1 Additional copies certified true by the
Award. Executive Director of the Secretariat shall be made
available, on request and at any time, to the parties or
16.4.1 Settlement as award - A compromise their counsel but to no one else.
agreement settled by mediation in the course of
arbitration or by direct negotiation between the SECTION 16.8 Filing of award - The original of an
parties shall be treated as an arbitral award if so arbitral award shall be filed with the Secretariat.
moved by the parties and subject to the approval of
the Arbitral Tribunal, after a summary hearing, that RULE 17 – POST-AWARD PROCEEDINGS
the same is not contrary to law, morals, good SECTION 17.1 Motion for correction of final award
customs, public order, or public policy. - Any of the parties may file a motion for correction
of the Final award within fifteen (15) days from
SECTION 16.5 Decision as to costs of arbitration - receipt thereof upon any of the following grounds:
In the case of non-monetary claims or where the a. an evident miscalculation of figures, a
parties agreed that the sharing of fees shall be typographical or arithmetical error;
determined by the Arbitral Tribunal, the Final Award b. an evident mistake in the description of any
shall, in addition to dealing with the merits of the party, person, date, amount, thing or property
case, fix the costs of the arbitration, and/or decide referred to in the award.
which of the parties shall bear the cost(s) or in what c. where the arbitrators have awarded upon a matter
proportion the cost(s) shall be borne by each of them. not submitted to them, not affecting the merits of
the decision upon the matter submitted;
SECTION 16.6 Termination of jurisdiction – Except d. where the arbitrators have failed or omitted to
for execution or post-award proceedings, the resolve certain issue/s formulated by the parties
jurisdiction of the Arbitral Tribunal over the dispute in the Terms of Reference (TOR) and submitted to
is terminated upon the finality of the Final Award or them for resolution and
Decision. Where an appeal is taken from a decision or e. where the award is imperfect in a matter of form
Final Award, and the appellate court directs a re- not affecting the merits of the controversy.
hearing or a hearing on the merits on any issue arising The motion shall be acted upon by the Arbitral
in the case, jurisdiction terminates only upon a final Tribunal or the surviving/remaining members.
disposition of the case by the appellate court and/or a
final determination of all incidental matters thereto. 17.1.1 The filing of the motion for correction shall
interrupt the running of the period for appeal.
Note: Appeal may be made in Domestic Arbitration
under Rule 45 (based on question of law, Here, 17.1.2 A motion for correction upon grounds other
appeal is governed by Rule 43 (question of law or than those mentioned in this section shall not
question of facts to the CA, can be elevated to SC interrupt the running of the period for appeal.
under Rule 65)
SECTION 17.2 Motion for reconsideration or new
SECTION 16.7 Notification of award to parties - trial.- A motion for reconsideration or new trial shall
Once a Final Award has been made, provided that the be considered a prohibited pleading.
costs of the arbitration have been fully paid to the
Secretariat by the parties or by one of them, the RULE 18 – EXECUTION OF FINAL AWARD
Secretariat shall provide the parties through their SECTION 18.1 Execution of Award. - A final
respective counsel a copy of the Final Award signed arbitral award shall become executory upon the lapse
by the Arbitral Tribunal. of fifteen (15) days from receipt thereof by the
parties.
Note: Notice of award is final absent an appeal.
Appeal is called Petition for Review from a Final SECTION 18.2 Petition for review.- A petition for
Award. A petition for review from a final award may review from a final award may be taken by any of the
be taken by any of the parties within fifteen (15) days parties within fifteen (15) days from receipt thereof in
from receipt thereof in accordance with the accordance with the provisions of Rule 43 of the
provisions of Rule 43 of the Rules of Court Rules of Court
SECTION 18.3 Entry of judgment. - If a petition for of the appellate court in case it upholds the award in
review is filed from a final award and a temporary whole or in part. Such surety bond shall be posted
restraining order (TRO) is issued by the appellate within such period of time, which shall in no case be
court, such award shall become executory only upon less than fifteen (15) days, as may be granted by the
the issuance of the entry of judgment of the appellate Arbitral Tribunal during the hearing on the motion
court, or upon the lapse/lifting of the TRO or for execution and the opposition thereto. The Surety
lifting of the preliminary injunction. Company posting the bond must be included in the
latest list of surety companies accredited by the
SECTION 18.4 Effect of petition for review. - The Supreme Court and must comply with the
petition for review shall not stay the execution of the requirements set by the CIAC for bond approval,
final award sought to be reviewed unless the Court of concurrence, and/or acceptance, such as, but not
Appeals directs otherwise upon such terms as it limited to, the prescribed „Surety Undertaking‟ form.
deems just. If there are no remaining/surviving appointed
arbitrators, the Commission may approve the required
SECTION 18.5 Execution/enforcement of awards. - bond.
As soon as a decision, order or final award has
become executory, the Arbitral Tribunal (or the The concurrence of the Commission to the approval
surviving remaining member/s), shall, motu proprio by the arbitrator/s of the surety bond to stay
or on motion of the prevailing party issue a writ of execution is only for the purpose of ensuring
execution requiring any sheriff or proper officer to compliance with the requirements set by the CIAC
execute said decision, order or final award. If there are for bond approval.
no remaining/surviving appointed arbitrator/s, the
Commission shall issue the writ prayed for. SECTION 18.7 Effect of reversal of award. - Where
an award is partially or totally reversed on appeal, the
Notwithstanding the Commission‟s disagreement Arbitral Tribunal (or the surviving/remaining
with the substance or merit of the award/decision, if members, or the Commission if there are no
execution is ripe or proper under the CIAC Rules, it remaining/surviving appointed arbitrators) may, on
shall release the writ of execution issued by the proper motion, issue such order of restitution or
arbitrator/s. Hence, once an award/decision becomes reparation of damages as equity and justice may
executory, the release of the writ of execution by the warrant under the circumstances.
Commission is purely ministerial, regardless of
whether or not the arbitrator/s considered the SECTION 18.8 Executory Powers– The Arbitral
comments of the Commission, or any of its members, Tribunal (or the surviving/remaining member/s, or
on points of substance in the award during scrutiny. the Commission, if there are no remaining/surviving
appointed arbitrators) shall have the authority and
18.5.1 The writ of execution shall direct the sheriff or power to decide matters and issue appropriate orders
other officer to conduct the sale of property on which are necessary and related to the execution of
execution in accordance with Section 15 of Rule 39 of the Award, including but not limited to the
the Rules of Court. In the case of sale of real property determination of sufficiency of the bond, approval of
or personal property not capable of manual delivery, the surety or bonding company, satisfaction of the
the auction sale shall be held at the office of the award, quashal of the execution, partial execution,
sheriff serving the writ. Upon proper application by issuance of alias writs, assessment of properties levied,
the sheriff, with notice to the parties, CIAC may appointment of a quantity surveyor or assessor,
authorize the sale to be held in the place where the examination of, and issuance of subpoena ad
property is located. testificandum and subpoena duces tecum to banks,
debtors of the judgment debtor and any person
SECTION 18.6 Stay of execution pending review. - holding properties or assets of the judgment debtor.
Execution issued under the preceeding Section may
be stayed upon approval by the Arbitral Tribunal (or RULE 19 - RELIEF NOT COVERED BY THE
the surviving/remaining member/s), with the RULES
concurrence of CIAC, of a surety bond posted by the SECTION 19.1 Motion for relief not covered by the
petitioner in an amount equal to the award, Rules - Every motion or other paper filed in
conditioned upon the performance of the judgment connection with the execution of an award not
expressly authorized by the Rules shall be charged a all proceedings to insure a speedy, adequate and
filing fee of Php 3000.00 or as may be prescribed by justifiable disposition of the disputes and cases
CIAC. The motion shall be acted upon by the Arbitral submitted to them for resolution.
Tribunal (or the surviving/remaining members, or the
Commission if there are no remaining/surviving 21.2.1 In all arbitration proceedings before or after an
appointed arbitrators). award has been rendered but prior to the termination
of the jurisdiction of the arbitrator/s over a case
RULE 20 – SMALL CLAIMS pursuant to Section 16.6 hereof, the arbitrator/s shall
SECTION 20.1 Small Claims - Cases where the have the power to issue subpoena and/or subpoena
claim does not exceed P1 million shall be categorized duces tecum requiring any person to attend the
as a small claim thereby entitled to special procedures hearing as a witness or to produce relevant
of disposition and reduced fees. documents.

20.1.1 A small claims case shall be handled by a sole SECTION 21.3 Extent of power of arbitrator - The
arbitrator whose fees shall be at a fixed rate of 3% of Arbitral Tribunal shall decide only such issues and
the claim but not less than P10,000.00 or as may be related matters as are submitted to them for
prescribed by CIAC. The expenses of the sole adjudication. They have no power to add, to subtract
arbitrator and CIAC staff consisting of actual from, modify, or amend any of the terms of the
expenses for travel, accommodations, and contract or any supplementary agreement thereto, or
administrative costs for at most two (2) days incurred any rule, regulation or policy promulgated by the
for hearing if held outside of Metro Manila shall be CIAC.
borne by CIAC.
SECTION 21.4 Interpretation and application of
20.1.2 All prescribed periods under normal procedure Rules (By Majority Votes) - The Arbitral Tribunal
shall whenever practicable, be abbreviated to fifty shall interpret and apply these Rules in so far as they
percent (50%) of that required. relate to his/its powers and duties. Where there is a
difference of opinion among the Arbitrators in an
RULE 21– GENERAL MATTERS arbitral tribunal concerning the meaning or
SECTION 21.1 Recording of proceeding - application of these Rules, the same shall be decided
Proceedings before an Arbitral Tribunal may be by a majority vote.
recorded by means of any audio and /or audio-visual
recording equipment such as, but not limited to, tape SECTION 21.5 Attendance of hearings - Persons
recorders and video cameras, or if a stenographer is having direct interest in the arbitration are entitled to
available, either through stenographic notes or attend the hearings. It shall be discretionary upon the
minutes taken of the proceedings. All recordings on Arbitral Tribunal to determine the propriety of the
tapes, films, cassettes, disks, or diskettes shall be attendance of any other person. The Arbitral Tribunal
done by CIAC and shall remain in its custody for shall have the power to require the exclusion of any
safekeeping and eventual disposal after the witness.
resolution of the case. Copies of such recordings
including transcripts and minutes of the proceedings SECTION 21.6 Waiver of Rules - Any party who
shall be made available to the parties upon request for proceeds with the arbitration after knowledge that any
a nominal fee. provision or requirement of these Rules has not been
complied with and fails to state his objection thereto
The arbitral Tribunal may opt to dispense with the in writing, shall be deemed to have waived his
use of recording devices or stenographic services and right to object.
take down notes of the proceedings. Such notes taken
shall be filed with CIAC and shall be part of the SECTION 21.7 Freedom to settle 45 - The parties
records of the case. Copies of the notes filed shall be shall be free to settle the dispute(s) anytime even if
made available to the parties, upon request, at the same is under arbitration. In such case, the actual
reproduction cost. expenses incurred for arbitration shall be charged
against the deposit. If the deposit is insufficient, the
SECTION 21.2 Control over proceedings- The parties shall equally shoulder the balance.
Arbitral Tribunal shall exercise complete control over
21.7.1 The parties may either jointly withdraw or the National Administrative Register, U.P. Law
move that their compromise agreement be the basis Center.
for rendering an award by the Arbitral Tribunal, if the
latter have already been appointed. Where the
arbitrators have been appointed and proceedings have
commenced, the arbitration fees to be charged the
parties shall be in accordance with the stage of
proceedings.

21.7.2 The Arbitral Tribunal shall act upon the


motion after conducting a summary hearing.

RULE 22 – COSTS
SECTION 22.1 Expenses and deposit - Arbitration
expenses shall include the filing and administrative
fees, arbitrator's fees, ADF Charges and fee and
expenses of the expert, and others which may be
imposed by CIAC.

22.1.1 The filing and administrative fees, ADF


charges, and arbitrator's fees for monetary, non-
monetary and small claims and the schedules of
payment therefor shall be in accordance with the
CIAC-approved Table of Administrative Charges and
Arbitrator's Fees.

22.1.2 Expert’s fees shall be determined and paid for


in accordance with Section 15.1.1 of the Rules.

SECTION 22.2 The CIAC may fix the fees of the


Arbitral Tribunal at a figure higher or lower than that
which would result from the application of the Table
of Fees if in the exceptional circumstances of the
case, the same appears to be necessary.

RULE 23. REPEALING CLAUSE


SECTION 23.1 The old rules and all policies issued
in connection therewith, as well as policies
inconsistent herewith are hereby repealed.

RULE 24. SEPARABILITY CLAUSE


SECTION 24.1 Separability – If for any reason or
reasons, any portion or provision of these Rules shall
be held unconstitutional or invalid, all other parts or
provisions not affected shall thereby continue to
remain in full force and effect.

RULE 25. EFFECTIVITY


SECTION 25.1 These Rules shall take effect fifteen
(15) days after its publication at least once in a
newspaper of general circulation and the filing of
three (3) certified copies thereof with the Office of

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